DISCLAIMER

 

05-0587R REPLACEMENT

RESOLUTION APPROVING A BUSINESS SUBSIDY DEVELOPMENT AGREEMENT AND AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE AND DELIVER NECESSARY DOCUMENTS FOR THE CIRRUS DESIGN CORPORATION PROJECT.

 

BY COUNCILOR GILBERT:

     BE IT RESOLVED, based upon the circumstances set out in the statement of purpose, the business subsidy created in this development agreement, on file in the office of the city clerk as Public Document No. __________, is approved, and the proper city officials are authorized to execute and implement the documents determined by this city attorney to be necessary to carry it out, but such authorization being conditional upon the completion of the following events:
     (a)  Cirrus Design, or its designee, has entered into a lease(s) for the site(s) of the project that contain terms and provisions acceptable to the DAA; and

     (b)  The proper city officials authorized to execute and implement the documents referenced above are hereby empowered to approve nonsubstantial changes to the terms of the documents to be executed; and

     (c)  All requirements of law, including public hearings, have been complied with.


STATEMENT OF PURPOSE: Cirrus Design Corporation (Cirrus) has proposed to expand its manufacturing facility at the Duluth International Airport (the DIAP) by constructing an expansion to its manufacturing plant and by constructing a large aircraft hanger (project).


Soil conditions (structural and environmental) on the sites of the expansion create additional development costs for the project (soils work).


Cirrus has requested that the Duluth economic development authority (DEDA) assist it in paying for the costs of the soils work.


Cirrus and the Duluth airport authority (DAA) have identified the need for additional parking at the DIAP for Cirrus employees, other lessees from DAA and visitors to the DIAP.


DEDA and the city of Duluth (the City) have applied for grants to enable DEDA to finance the construction of public parking facilities at the DIAP and believe such grants will be received.


Cirrus is willing to construct such parking facilities if DEDA agrees to reimburse it for the reasonable and necessary costs of construction of such parking facilities.


A development agreement containing terms and provisions relating to the project, the assistance by DEDA and business subsidy provisions has been prepared and presented to officials of DEDA and the city who have reviewed the same and recommend that it be implemented.